January sales levels were above the same month from 2019, the last pre-pandemic year, as pent-up demand continued to overcome high interest rates and economic concerns. PHOTO courtesy Ford Canada.
Good news to start the year for job shops serving the Canadian automotive market: January sales jumped from 2023’s 98,259 units up to an estimated 112,862 – a gain of 14.9%, according to a report from Desrosiers Automotive Consultants (DAC).
“January sales are a cause for celebration,” says Andrew King, Managing Partner at DAC “Notably, January sales levels were above the same month from 2019, as pent-up demand continued to overcome high interest rates and economic concerns. While inventories remain tight in a couple of critical segments, the market is moving back into a more normal environment in which demand (rather than just supply) plays a more central role in determining sales volumes.”
The Seasonally Adjusted Annual Rate (SAAR) for the month came in at a healthy 2.06 million – crossing over the two million mark for the first time since February 2020.
“We would be remiss if we did not note that the first signs of weakness do seem to be appearing in certain market strata – but for now we will take the win – and celebrate,” added King.